Coins: 14,505
Exchanges: 1,104
Market Cap: $2.749T 1.6%
24h Vol: $80.964B
Gas: 31 GWEI
Go Ad-free

Erik Voorhees’s 3 Bitcoin Trends to Watch in 2016

Kyle Torpey -

ShapeShift.io CEO Erik Voorhees was recently interviewed by Paul Buitink and Tim Pastoor on reinvent.money, and the long-time Bitcoin entrepreneur discussed everything from the current regulatory environment around Bitcoin to the specific altcoins that seem to be gaining traction on his cryptocurrency exchange platform. Near the end of the discussion, Voorhees was asked to provide some of his thoughts on what 2016 may hold in store for Bitcoin.

Erik Voorhees discussed three positive trends for Bitcoin and blockchain technology in 2016, and he also provided a prediction on where the bitcoin price may end up roughly one year from now.

1. New Apps from Venture Capital Money

The first trend for 2016 pointed out by Voorhees during his interview on reinvent.money was the release of new Bitcoin apps that have been built with the more than one billion dollars that have poured into the industry over the past few years. 2015 was a particularly strong year for investments in Bitcoin startups, with more than half of all venture capital funding coming during that year.

Voorhees discussed the idea of all that money leading to the development of more applications and use cases for Bitcoin. In his view, these new applications can attract new users, which improves the health of the Bitcoin ecosystem as a whole. Voorhees stated:

“I think that over the last year-and-a-half or two years -- all the venture capital that has gone into various Bitcoin companies -- that stuff takes a while to turn into actual products that consumers can see and enjoy. And over the next year, I think a lot of those products are going to be going to market. So very slick, polished Bitcoin-based products that were the big investments of the last couple of years are going to be visible. And, if they’ve been done well, those will attract users and build the ecosystem.”

abra

Two companies that have received a lot of attention from venture capitalists and Bitcoin enthusiasts over the past few months are Abra and Align Commerce. While Align Commerce is already functional in many countries around the world, Abra is just now launching in the Philippines and the United States. Abra is intended to be “Uber for international remittance”, and the software allows anyone to turn their smartphone into a money transfer terminal on the network. One of the unique properties of Abra and Align Commerce is neither company feels a need to mention Bitcoin to their users.

Many Bitcoin startups, like Abra, are only now preparing to launch after raising money over the past couple of years. Blockstream is another Bitcoin company preparing to launch new software and services in 2016. The launch of their sidechain for bitcoin exchanges, known as Liquid, is planned for early 2016. The sidechain will enable fast transfers with effectively instant confirmations between participating exchanges. It’s also possible that some form of the Lightning Network will be ready in 2016, which is another project Blockstream has been working on lately.

2. The Lightning Network

Speaking of the Lightning Network, this system for payment-channel-powered Bitcoin micropayments was the second trend for Bitcoin in 2016 mentioned by Erik Voorhees during his interview. The ShapeShift.io CEO noted:

“I’m very excited about the Lightning Network; it certainly has lots of potential. If that gets done well and people can really do microtransactions essentially at no cost and at any number, that’ll just blow out a whole bunch of interesting use cases that the world should probably get prepared for.”

Bitcoin has often been touted as the technology that can finally enable microtransactions on the Internet, but the reality is the blockchain itself isn’t quite suited for extremely low-value transactions -- at least not now. Although an on-blockchain transaction is still cheaper than a credit card, the transaction fee still makes any transaction around 25 cents or less a bit expensive.

Although it’s possible an early version of the Lightning Network could be available in 2016, it’s unlikely that any new applications that require the use of this microtransactions network will be ready within the same year. The Lightning Network will be viewed as an alteration to Bitcoin that enables an entirely new list of applications by developers around the world. Streamium and Joystream are examples of applications that already take advantage of micropayment channels in Bitcoin, but the Lightning Network adds much more flexibility to this sort of functionality.

3. Augur: The Decentralized Prediction Market

augur

Another project on Voorhees’s radar is Augur. Built on top of Ethereum, Augur is a decentralized prediction market originally based on Paul Sztorc’s Truthcoin. The idea is anyone will be allowed to bet on the outcome of any event -- on a global or local scale -- and the bets placed on each event can act as an indicator of the likelihood of that event happening in the future. An event could be anything from who will win the 2016 US Presidential Election to whether or not it will rain in New York City on August 23, 2017.

Voorhees explained his excitement for the launch of Augur during his recent interview:

“I’m also really excited about Augur on Ethereum. That is also another one of those projects that has huge potential, and if they execute it well, that is really going to change the way the world works -- being able to price information in a distributed manner is a really important service that I think the world is poorer without. And that’ll be, I believe, live [in] 2016.”

As mentioned above, Truthcoin was originally used as the base concept behind Augur, but the project has now tweaked Paul Sztorc’s original creation to their own liking. Sztorc is supporting another decentralized prediction market, Bitcoin Hivemind, which is intended to be a sidechain to Bitcoin. The Sztorc-endorsed project is based on his original Truthcoin white paper.

Bitcoin Hivemind is currently backed by Bitcoin Angel Investor and Evangelist Roger Ver. Erik Voorhees was an early investor in the Augur crowdsale.

What Will the Bitcoin Price Be a Year from Now?

Voorhees laid out three key areas in Bitcoin to watch in 2016 during the interview with reinvent.money, but any comments on what will happen with the peer-to-peer digital cash system in the future would not be complete without a price prediction. When asked where he thinks the bitcoin price will be at the end of 2016, Voorhees claimed the digital commodity will be trading at $1700.

This would surpass bitcoin’s all-time high of roughly $1200 from late 2013. If venture-funded Bitcoin applications come online, the Lightning Network launches, and Augur or another decentralized prediction market succeeds, there would be plenty of reasons for everyone to be bullish on bitcoin once again. Having said that, making a prediction on the bitcoin price has always turned out to be a fool’s errand.

CoinGecko's Content Editorial Guidelines
CoinGecko’s content aims to demystify the crypto industry. While certain posts you see may be sponsored, we strive to uphold the highest standards of editorial quality and integrity, and do not publish any content that has not been vetted by our editors.
Learn more
Want to be the first to know about upcoming airdrops?
Subscribe to the CoinGecko Daily Newsletter!
Join 600,000+ crypto enthusiasts, traders, and degens in getting the latest crypto news, articles, videos, and reports by subscribing to our FREE newsletter.
Tell us how much you like this article!
Kyle Torpey
Kyle Torpey
Kyle is a freelance writer who has been interested in bitcoin since 2011. His work has been featured on Business Insider, VICE Motherboard, Let's Talk Bitcoin, RT's Keiser Report, and many other media outlets. Follow the author on Twitter @kyletorpey

More Articles

Select Currency
Suggested Currencies
USD
US Dollar
IDR
Indonesian Rupiah
TWD
New Taiwan Dollar
EUR
Euro
KRW
South Korean Won
JPY
Japanese Yen
RUB
Russian Ruble
CNY
Chinese Yuan
Fiat Currencies
AED
United Arab Emirates Dirham
ARS
Argentine Peso
AUD
Australian Dollar
BDT
Bangladeshi Taka
BHD
Bahraini Dinar
BMD
Bermudian Dollar
BRL
Brazil Real
CAD
Canadian Dollar
CHF
Swiss Franc
CLP
Chilean Peso
CZK
Czech Koruna
DKK
Danish Krone
GBP
British Pound Sterling
GEL
Georgian Lari
HKD
Hong Kong Dollar
HUF
Hungarian Forint
ILS
Israeli New Shekel
INR
Indian Rupee
KWD
Kuwaiti Dinar
LKR
Sri Lankan Rupee
MMK
Burmese Kyat
MXN
Mexican Peso
MYR
Malaysian Ringgit
NGN
Nigerian Naira
NOK
Norwegian Krone
NZD
New Zealand Dollar
PHP
Philippine Peso
PKR
Pakistani Rupee
PLN
Polish Zloty
SAR
Saudi Riyal
SEK
Swedish Krona
SGD
Singapore Dollar
THB
Thai Baht
TRY
Turkish Lira
UAH
Ukrainian hryvnia
VEF
Venezuelan bolívar fuerte
VND
Vietnamese đồng
ZAR
South African Rand
XDR
IMF Special Drawing Rights
Cryptocurrencies
BTC
Bitcoin
ETH
Ether
LTC
Litecoin
BCH
Bitcoin Cash
BNB
Binance Coin
EOS
EOS
XRP
XRP
XLM
Lumens
LINK
Chainlink
DOT
Polkadot
YFI
Yearn.finance
Bitcoin Units
BITS
Bits
SATS
Satoshi
Commodities
XAG
Silver - Troy Ounce
XAU
Gold - Troy Ounce
Select Language
Popular Languages
EN
English
RU
Русский
DE
Deutsch
PL
język polski
ES
Español
VI
Tiếng việt
FR
Français
PT
Português
All Languages
AR
العربية
BG
български
CS
čeština
DA
dansk
EL
Ελληνικά
FI
suomen kieli
HE
עִבְרִית
HI
हिंदी
HR
hrvatski
HU
Magyar nyelv
ID
Bahasa Indonesia
IT
Italiano
JA
日本語
KO
한국어
LT
lietuvių kalba
NL
Nederlands
NO
norsk
RO
Limba română
SK
slovenský jazyk
SL
slovenski jezik
SV
Svenska
TH
ภาษาไทย
TR
Türkçe
UK
украї́нська мо́ва
ZH
简体中文
ZH-TW
繁體中文
Login to track your favorite coin easily 🚀
By continuing, you agree to CoinGecko Terms of Service and acknowledge you’ve read our Privacy Policy
or
Forgot your password?
Didn't receive confirmation instructions?
Resend confirmation instructions
IT'S FREE! Track your favorite coin easily with CoinGecko 🚀
By continuing, you agree to CoinGecko Terms of Service and acknowledge you’ve read our Privacy Policy
or
Password must contain at least 8 characters including 1 uppercase letter, 1 lowercase letter, 1 number, and 1 special character
Didn't receive confirmation instructions?
Resend confirmation instructions
Forgot your password?
You will receive an email with instructions on how to reset your password in a few minutes.
Resend confirmation instructions
You will receive an email with instructions for how to confirm your email address in a few minutes.
Get the CoinGecko app.
Scan this QR code to download the app now App QR Code Or check it out in the app stores
coingecko
Continue in app
Track prices in real-time
Open App